Los Angeles daily herald., 1887-03-11
THE RAILROAD POOL
The Price Sixteen Million
Dollars.
JAY GOULD INTERESTED IN 1T.
The Baltimore and Ohio and Rich
mOnd Terminal Would Make q
6000 Mile Trunk Line.
Associated Press Dispatches to the HERALD

OHio Iuurouu lS authority IOT tue IOliOW
ing statement: The plan for the consoli
dation oflvarious railroad interests grew
out of the efforts of Jay Gould to Undue,
Robert Garrett to pool the business o
the Baltimore and Ohio Telegraph Com
pany with that of the Western Union
Garrett absolutely refused to become
party to such an arrangement and de
clared that he would always keel
his business under his own control;
that tho telegraph and railroad interests
were identical, and that they SHOULD
continue SO as long as he controlled
them; but at the same time he intimated
that he was willing to free himself oi
his business cares by an absolute sale OF
his controlling interest in the Baltimore
and Ohio railroad, which would carry
with it the control of the telegraph and
express companies. With this hint as
basis, the negotiators returned to New
York and formed syndicate composed
as follows: Calvin G. Brice, Alfred
Sully. Austin Corbin, John G. Moore,
Samuel Thomas, II. C. Figens took, Win.
slow, Lanier 4 Co., and j. z. Pace. A con.
tract was then framed in which Garrett
agreed to transfer to the syndicate his
controlling interest in the Baltimore
and Ohio railroad within thirty days
for SIG, 6,000. 900, forfeiture being depos.
tied by Garrett. The contract was
shown to Gould on Saturday, and it is
understood that the telegraph business
is to 60 to the Western Union Company,
the express business to Adams Express
Company. The Executive Committee
of the Richmond Terminal Company
will consider two propositions relating
to the purchase of the Baltimore and
Ohio stock, under the option of Robert
Garrett. One OF the Directors said to.
day that the proposition most likely
to be adopted is that the
syndicate shall take the stock
Of their interests and hold it until the
Richmond Terminals full Board of Di-
rectors approve of the action of the Ex.
eeutive Committee. 1t will then be
placed in collateral trust and the Rich.
mond Terminal will either consolidate
the Baltimore and Ohio with their sys.
TEN or operate it separately as a propri.
etary road. The Baltimore and Ohio
track from Baltimore and Washington
to Philadelphia will be used as trunk
line for the business of its own Western
lines and the other roads in the Rich
mond Terminal system. A Director
claimed tina. the Pennsylvania railway
hod M in torosA IN tho daoI ,,nr !, n Il . Ia q
Western Union.
PHILADELPHIA, March lO.-The lead.
ing executive officers at the Penosyl-
vanis Railroad Company say they have
not been consulted in regard to the
Baltimore and Ohio deal.
NEW YORK, March l0.-Calvin S.
Brice, one of the Richmond Terminal
Directors, and also supposed to be in the
syndicate to which President Garrett. of
the Baltimore and Ohio. has offered the
option of purchase, said after the meet
ing of the Richmond Terminal Directors:
1--WE have not decided yet whether or
not we shall accept the offer. l greatly
doubt ii Garrett would sell, except on
the condition that the Baltimore
and Ohio and Richmond Terminal
be consolidated, making a 6000-
mile trunk line." Another Richmond
Terminal Director said it was not likely
that the company would accept CARROTS
offer, but he thought the syndicate in
which Messrs. Brice, Tully & Thomas
are interested, would do so. This Di.
rector also said that the terms were
$4,000, 600 down and $40, 900, 900 in one
year, stock for that amount to be re.
ceived as security.
BALTIMORE, March l0.-Robert Gar.
rett this afternoon virtually admitted to
prominent Baltimore man that there
was considerable truth in the newspaper
talk of the big railroad deal. He would
give no definite idea of the particulars
of the scheme; but from his remarks
the Inference was drawn that the Balti-
more and Ohio railroad has became a
factor in the syndicate that is to control
something like national rail-
road, reaching from Canada to the
Gulf of Mexico, and probably from
New York TO the extreme West. 1t is
generally believed that the biggest rail-
road deal on record has been or is about
to be made. The passage of the Inter.
state Commerce bill hurried them to a
settlement. Mr.. Sully has been active
in arranging the details of the scheme,
and he is the only one positively known
to be connected with it. Opinions differ
as to whether single share of Baltimore
and Ohio stock has been or will be trans.
ferred, hut the belief is gaining ground
that the deal involves not only the road
itself, but also its telegraph, express and
sleeping.car interests. The widest sort
OF talk is daily INDUCED in. but no actual
facts can be obtained from any one
in position to know anything about it.
Many are inclined to believe that the
stock of 1900 shares held by John l.
Hogskins, trustee. or at least consider
able portion OF it, has been placed un
der the control of new syndicate, bu
32, 600 shares held by the city of Balti
more cannot be touched without a spe
cial act of the City Council. The 30, 90
shares left in trust by the late John w
Garrett can be disposed of, as his vii
did not forbid the sale, but simply ad
vised that it be held in trust for twent
years.
NEW YORK, March lO.-The T'r;bu,,
of to morrow will say: The negotiation
for the transfer of the control of th
B fillmore and Ohio railroad to a Ne,
York syndicate have not yet been cal
ried to a successful issue. tits reporte
that the option obtained from Presider
Garrett by Alfred Sully expired yestel
day, and that Sully was unable to rails
the money to meet the first payment
While the exact term Of the contract
not known, is has been established ths
Sc, 600, 900 of the $l6, 200, 900 require
for the purchase of so 900 shares at So:
was to be paid in cash. Stock, however, wa
to be placed in trust until the paymer
had been completed of the remainin
| $40, ,O00, 900, on which years time wa
given. 1t appears that Of the cash pa,
ment an installment of $1,000, 900 We
to be paid yesterday. The sum was ne
sent to Baltimere, but in place of none
q request for the extension of the priv
lleQe was forwarded. 1t ID not know
that any reply to the message was r,